HomeMy WebLinkAboutAgenda Report - July 17, 2019 C-08AGENDA ITEM c-g
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Adopt Resolution Awarding Contract for Mclane Substation Upgrade Project to
Wilson Utility Construction Co. of Canby, Oregon ($1,605,836), Authorizing City
Manager to Execute Change Orders ($194,164), and Appropriating Funds
($4oo,ooo)
July '17 , 2019
Electric Utility Director
RECOMMENDED ACTION Adopt a resolution awarding a contract for the Mclane Substation
Upgrade Project to Wilson Utility Construction Co. of Canby,
Oregon, in the amount of $1,605,836, authorizing the City Manager
to execute change orders in an amount not-to-exceed $194,164,
and appropriating funds in the amount of $400,000.
BACKGROUND INFORMATION: The Mclane Substation circuit breakers and relay protection
equipment are approximately 40 years old and prone to abrupt
failure. Plans and specifications associated with the upgrade of the
substation equipment and technology were approved by the City Council on April 17,2019. The City
received the following two bids for this project on May 29,2019.
Bidder B¡d ($)Above/(Below) Enqineer's Estimate ($)
Enqineer's Estimate 1,400,000.00 N/A
Wilson Utilitv Construction Co 1,605,835.28 205,835.28
NHVS lnc.2,129,627.00 729,627.00
The engineer's estimate, prepared by Leidos, is based on prior unit prices from similar projects. Market
forces continue to inflate construction costs and, while higher than estimated, the bid received form
Wilson Utility Construction Co. has been deemed reasonable when considering these factors.
Staff recommends awarding the contract for the Mclane Substation Upgrade Project to Wilson Utility
Construction Co. in the amount of $1,605,836, authorizing the City Manager to execute change orders in
an amount not to exceed $194,164 to account for project contingencies, and appropriating funds in the
amount of $400,000 to account for the difference between the current authorized appropriation of 91.4
million in the approved Fiscal Year 2019120 Capital lmprovement Program (ClP) and the total estimated
cost of $1.8 million, including the actual bid cost and project contingencies.
This project is in accordance with the Lodi Electric Utility (LEU) Strategic Plan whereby LEU will design,
operate, and maintain the distribution system to ensure reliable electric service.
Not applicable.FISCAL IMPAGT:
APPROVED
r, City Manager
Adopt Resolution Awarding Contract for Mclane Substation Upgrade Project to Wilson Utility Construction Co. of Canby, Oregon ($1,605,836),
Authorizing City Manager to Execute Change Orders ($194,164), and Appropriating Funds ($400,000)
July 17,20'19
Page2
FUNDING AVAILABLE: $1.4 million included in FY 201 9120 CIP (Project No. EUCP-18148).
Additional $400,000 appropr¡ation requested from LEU Fund Balance
(Fund 500) to LEU Capital Fund 501 (Project No. EUCP-18148).
Andrew C
Deputy City ager/l Director
Melissa
lnterim Electric Utility Director
PREPARED BY: Hasan Shahriar, P.E., Senior Power Engineer
RESOLUTION NO 2019-126
A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE
CONTRACT FOR THE MCLANE SUBSTATION UPGRADE PROJECT
TO WILSON UTILITY CONSTRUCTION COMPANY, OF CANBY,
OREGON; AUTHORIZING THE CITY MANAGER TO EXECUTE
CHANGE ORDERS; AND FURTHER APPROPRIATING FUNDS
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on May 29, 2019, al
1 1:00 a.m., for the McLane Substation Upgrade Project, described in the plans and
specifications therefore approved by the City Council on April 17,2019; and
WHEREAS, said bids have been compared, checked, and tabulated and a report thereof
filed with the City Manager as follows:
Bid Amount ($)
Wilson Utilitv Construction Companv 1,605,835.28
NHVS, lnc.2,129,627.00
WHEREAS, staff recommends awarding the contract for the McLane Substation
Upgrade Project to the low bidder, Wilson Utility Construction Company, of Canby, Oregon, in
the amount of $1,605,836; and
WHEREAS, staff also recommends that the City Council authorize the City Manager to
execute change orders in an amount not to exceed $194,164; and
WHEREAS, staff also recommends the City Council appropriate funds in the amount of
$400,000 from Lodi Electric Utility Fund Balance (Fund 500) to LEU Capital Fund 501 (Project
No. EUCP-18148) for Fiscal Year2019120to be added to the existing $1.4 million budget for
Project No. EUCP-18148 included in the FY 2019120 ClP, for a total approved project budget of
$1.8 million.
NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby award
the contract for the Mclane Substation Upgrade Project to the low bidder, Wilson Utility
Construction Company, of Canby, Oregon, in the amount of 91,605,836; and
BE lT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
City Manager to execute the contract on behalf of the City and to execute change orders in an
amount notto exceed $194,164; and
BE lT FURTHER RESOLVED that the Lodi City Council does hereby authorize an
additional appropriation for the Mclane Substation Upgrade Project, in the amount of $400,000,
as set forth above; and
BE lT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
City Manager to continue budget authority up to the full project budget for this project from fiscal
year to fiscal year until such point as the project is complete and is accepted by Council. At
such time, all unspent budget authority will return to the fund for re-appropriation by the
City Council.
Dated: July 17,2019
I hereby certify that Resolution No. 2019-126 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held July 17,2019, by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES:
ABSENT:
ABSTAIN
COUNCIL MEMBERS - None
COUNCIL MEMBERS _ None
COUNCIL MEMBERS - None
NIFER
Clerk
2019-126